HAPPY MONDAY TO THE STREET
Michael Burry has a new metaphor for your streaming portfolio: Disney (DIS) makes wine, Netflix (NFLX) makes milk.
The Big Short investor argues Disney's Star Wars and Toy Story only get better with age, while Netflix hits like Squid Game curdle once the buzz fades.
In his view, Netflix stock, down nearly 50% from its peak, may already be past its sell-by date.
🟥 | US stocks slipped today as continued US-Iran conflict put upward pressure on oil prices.
📈 | One Notable Gainer: Archer Aviation (ACHR) jumped after unveiling an autonomous aircraft co-developed with Anduril.
📉 | One Notable Decliner: Sweetgreen (SG) slid as the FDA keeps investigating a cyclospora outbreak.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
WILL GAMESTOP BUY EBAY THIS YEAR?
Meme traders don’t like to take no for an answer, and evidently, neither do meme stock execs. GameStop (GME) just doubled its stake in eBay (EBAY) to nearly 10%, two months after the marketplace rejected its $56B takeover bid as "neither credible nor attractive." Cohen says he is "coming for eBay one way or another." But the market isn’t so sure.
Market Movers
AMD, AMC, CAVA
📈 | Advanced Micro Devices (AMD) rose after Microsoft (MSFT) said it will offer AMD's Helios system on Azure.
📈 | AMC Entertainment (AMC) gained on a strong opening for The Odyssey and upbeat Q2 results.
📉 | Cava Group (CAVA) fell as a cyclospora probe weighed on restaurant stocks.
📈 | Iren (IREN) climbed after lifting its year-end AI cloud revenue target above $4B.
📈 | Alibaba (BABA) advanced after previewing its new Qwen 3.8 Max AI model.
Tomorrow's Trade Idea, Today
SEEING THE LITE
Stock Spotlight
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Green Lite
Barclays has a new favorite path to semiconductor exposure.
Analyst Tom O'Malley upgraded Lumentum to Overweight, calling its recent pullback a gift for anyone who missed the run.
Shares have roughly doubled this year, yet slid over the past three months as investors questioned whether AI demand for its optical gear will hold.
The Now vs. The Later
That doubt, O'Malley argues, rests on a shaky idea: that demand for scale-up co-packaged optics is getting pushed out.
Nothing has changed, he counters, with transceiver and laser demand still strong and the risk/reward tilted toward buyers.
He also expects talk of wafer allocation, memory supply, and expanding addressable markets to move the stock more than any beat-and-raise when Lumentum reports fiscal Q4 on Aug 11.
Bright Company
Wall Street is already on board. Of the 27 analysts covering the name, 22 rate it Buy or Strong Buy.
O'Malley is betting the recent dimming was just a flicker before the next leg up.
Do you own any shares of Lumentum Holdings (LITE)?
OVERHEARD ON THE STREET
⚖️ | A California judge granted a 14-day temporary restraining order pausing Paramount Skydance's (PSKY) $110B acquisition of Warner Bros. Discovery (WBD).
⛽ | US gas prices climbed back to a $4 national average as the US and Iran traded fresh attacks.
✈️ | JetBlue (JBLU) won the LaGuardia slots for up to 12 daily round-trips left behind by the defunct Spirit Airlines.
🚗 | Polestar (PSNY) will not appeal its US sales ban and is exiting the American market entirely.
🥬 | The FDA walked back its finding that a Taylor Farms lettuce sample tested positive for cyclospora, calling it a false positive.
FRIDAY'S POLL RESULTS
Do you own any shares of 3M (MMM)?
▇▇▇▇▇▇ 🐂 Yup, I'm holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I'm interested
And, in response, you said:
🐻 Nope, not interested — “Had it before, and the results were not good.”
👀 No, but I'm interested — “New markets are opening up — colorful Scotch tape for KIDS!”
